Vietnamese airlines seek growth abroad as home market flattens

A series of new international services are expected to be launched between July and the end of the year as local carriers seek new passengers, improve aircraft utilization, and tap additional sources of revenue.

Vietnam Airlines has increased its Da Nang-Seoul service to 14 flights a week and its Da Nang-Tokyo service to 11, while expanding its network to Amsterdam, Milan, Copenhagen, and Colombo.

Nguyen Quang Trung, deputy chief executive of Vietnam Airlines, said at a recent meeting with the Korea Tourism Organization that the carrier was also considering flights to Cheongju and Daegu, in addition to its existing gateways in Seoul and Busan.

Trung said the new routes would give Vietnamese travelers greater access to major international hubs while creating more entry points for overseas visitors to Vietnam.

The national flag carrier currently operates 12 non-stop routes to eight destinations in Europe.

Other Vietnamese airlines are pursuing similar expansion plans.

Vietjet plans to add flights to Colombo, Cebu, Singapore, and Kuala Lumpur. 

Meanwhile, Sun PhuQuoc Airways has launched a service between Phu Quoc and Chengdu and is preparing to open a Bangkok route, while targeting further expansion into Japan, India, Russia, and Kazakhstan.

The push is being driven by stronger international demand.

Vietnam handled 26.2 million international air passengers in the first half of 2026, up 15.4 percent from a year earlier, according to the Civil Aviation Authority of Vietnam.

Domestic passenger traffic, meanwhile, rose just 0.3 percent to 18.7 million.

Vietnamese airlines carried only 36.6 percent of international passengers, leaving nearly two-thirds of the market to foreign carriers.

An airline representative said opening international routes could help carriers reach more passengers and boost revenue from business-class fares, baggage, in-flight meals, and cargo as domestic growth slows.

It also allows airlines to keep aircraft flying for longer hours instead of leaving them grounded while still paying leasing, maintenance, and staffing costs.

Tourism is another driver of the expansion.

Non-stop flights reduce connection times and allow tour operators to take visitors directly to destinations such as Da Nang, Nha Trang, and Phu Quoc rather than routing them through Hanoi or Ho Chi Minh City.

However, strong passenger demand does not necessarily make a route profitable.

Fuel accounts for about 25-30 percent of operating costs, while fluctuations in oil prices, the U.S. dollar exchange rate, and airport fees can quickly erode margins.

Carriers therefore need more than high load factors.

They must attract passengers in both directions, sell a profitable mix of fare classes, and generate more ancillary revenue.